HDFC introduces new financing facility for holiday homes

Housing Development Finance Corporation (HDFC) has introduced a new financing product, ‘Holiday Home Financing’, aimed at assisting the development of a second home for holidays.

HDFC said properties developed under Holiday Home Financing can be used as a second home to cherish with family for holidays or a property to rent out for extra income.

“We are considering houses designed with bedrooms and attached living [room] and kitchen as a second home. These homes are specifically intended for holiday use. Holiday homes built in this regard can be rented out as well,” HDFC said.

The Holiday Home Financing is available to both individual and joint applicants. It offers flexible borrowing options tailored to personal needs, with no minimum or maximum loan limit. The loan term extends up to 20 years, with an annual interest rate of 12.25%. All financed properties must be mortgaged—even in cases of long-term leaseholds, the landowner must provide a mortgage guarantee.

Alongside Holiday Home Financing, HDFC has introduced another financing product, ‘Lite Financing’.

Lite Financing can be used for home improvement projects, furniture purchases and small-scale renovations. It is aimed at brining your renovation aspirations to life with this flexible financing option, whether it is for a stylish new sofa set, a complete kitchen makeover, or a comprehensive home refresh.

HDFC noted that it is the corporation’s first unsecured financing facility.

“Lite Financing is a subproduct of our Home Improvement Financing. The difference is that funds are issued much easily without any security,” HDFC detailed.

HDFC, which has also introduced two Shariah-complaint financing products, said a version of ‘Lite Financing’ compliant with Islamic Shariah will be introduced very soon.

Lite Financing comes with a five-year term, an interest rate of 15% per annum, and allows loans ranging from MVR 50,000 to MVR 500,000. To qualify, applicants must have received a consistent salary deposit for the past 12 months.